The warning was sent in a statement which the official KCNA news agency was authorized to release.

The KCNA reported that following the exchange of artillery fire between the DPRK and South Korea on Nov. 23 and last week's U.S.-South Korean naval drills, Seoul is planning large-scale combined naval maneuvers with the U.S. Seventh Fleet. Moreover, South Korea will stage firing exercises at 29 places including Taechong Island, one of the five islands very close to the DPRK territory, the KCNA said.

All the South Korean moves are aiming at making military provocations against the DPRK and implementing its so-called "retaliatory plan," the statement said.

The provocations are rapidly driving the situation on the Korean Peninsula to "an uncontrollable extreme phase," and no one can predict to what extent the situation will deteriorate in the future, it warned.

The DPRK is now maintaining "maximum self-possession and self-control," the statement said. But if an all-out war breaks out between the two sides, it will seriously affect peace and security not only on the Korean Peninsula, but also in the rest of the region, it said.

Tensions on the Korean Peninsula have been heightened since Nov. 23, when the DPRK and South Korea exchanged artillery fire, which killed four South Koreans.

PYONGYANG, Dec. 4 (Xinhua) -- The Democratic People's Republic of Korea (DPRK) condemned the triangle military alliance by the United States, South Korea and Japan, official Rodong Sinmun said in a signed article on Saturday.

"The intensified moves of the United States, Japan and South Korea to knock into shape their tripartite military alliance are a serious threat and challenge to peace not only on the Korean Peninsula but also in Asia and the rest of the world and a hideous criminal scenario for aggression," the KCNA news agency quoted the paper as saying. Full story

SEOUL, Dec. 3 (Xinhua) -- South Korea's next defense chief in the making showed his tough side Friday as the country reels from the latest clash with the Democratic People's Republic of Korea last week.

An all-out war with the Democratic People's Republic of Korea ( DPRK) is unlikely but South Korea is ready to air raid the DPRK as a response to further provocation, South Korea's defense chief nominee Kim Kwan-jin told lawmakers at his confirmation hearing. Full story

South Korean President Lee Myung-bak speaks in a nationally televised public speech in Seoul, capital of South Korea, Nov. 29, 2010. South Korea will make the Democratic People's Republic of Korea (DPRK) pay for any further provocation as tolerance in the past has only resulted in bigger provocations, South Korean President Lee Myung-bak said Monday. (Xinhua Photo)

SEOUL, Nov. 29 (Xinhua) -- South Korea will make the Democratic People's Republic of Korea (DPRK) pay for any further provocation as tolerance in the past has only resulted in bigger provocations, South Korean President Lee Myung-bak said Monday.

"(We) have come to realize it's hard to expect North Korea ( DPRK) to voluntarily give up on its military brinkmanship and nuclear program," Lee said in a nationally televised public speech Monday morning. "South Koreans now know further patience and tolerance will only encourage even bigger provocations," he said. "We will make sure that the North pays for its future provocations. " Full story

(NSI News Source Info) ISLAMABAD, Pakistan - December 5, 2010: Saudi Arabia is the world's largest source of funds for Islamist militant groups such as the Afghan Taliban and Lashkar-e-Taiba – but the Saudi government is reluctant to stem the flow of money, according to Hillary Clinton.

The cables highlight an often ignored factor in the Pakistani and Afghan conflicts: that the violence is partly bankrolled by rich, conservative donors across the Arabian Sea whose governments do little to stop them.

The problem is particularly acute in Saudi Arabia, where militants soliciting funds slip into the country disguised as holy pilgrims, set up front companies to launder funds and receive money from government-sanctioned charities.

Militants seeking donations often come during the hajj pilgrimage – "a major security loophole since pilgrims often travel with large amounts of cash and the Saudis cannot refuse them entry into Saudi Arabia". Even a small donation can go far: LeT operates on a budget of just $5.25m (£3.25m) a year, according to American estimates.

Saudi officials are often painted as reluctant partners. Clinton complained of the "ongoing challenge to persuade Saudi officials to treat terrorist funds emanating from Saudi Arabia as a strategic priority".

Washington is critical of the Saudi refusal to ban three charities classified as terrorist entities in the US.

There has been some progress. This year US officials reported that al-Qaida's fundraising ability had "deteriorated substantially" since a government crackdown. As a result Bin Laden's group was "in its weakest state since 9/11" in Saudi Arabia.

Any criticisms are generally offered in private. The cables show that when it comes to powerful oil-rich allies US diplomats save their concerns for closed-door talks, in stark contrast to the often pointed criticism meted out to allies in Pakistan and Afghanistan.

"Some Afghan businessmen in the UAE have resorted to purchasing tickets on the day of travel to limit the chance of being kidnapped themselves upon arrival in either Afghanistan or Pakistan," the report says.

One report singled out a Kabul-based "Haqqani facilitator", Haji Khalil Zadran, as a key figure. But, Clinton complained, it was hard to be sure: the UAE's weak financial regulation and porous borders left US investigators with "limited information" on the identity of Taliban and LeT facilitators.

The lack of border controls was "exploited by Taliban couriers and Afghan drug lords camouflaged among traders, businessmen and migrant workers", she said.

In common with its neighbours Kuwait is described as a "source of funds and a key transit point" for al-Qaida and other militant groups. While the government has acted against attacks on its own soil, it is "less inclined to take action against Kuwait-based financiers and facilitators plotting attacks outside of Kuwait".

Kuwait has refused to ban the Revival of Islamic Heritage Society, a charity the US designated a terrorist entity in June 2008 for providing aid to al-Qaida and affiliated groups, including LeT.

There is little information about militant fundraising in the fourth Gulf country singled out, Qatar, other than to say its "overall level of CT co-operation with the US is considered the worst in the region".

The funding quagmire extends to Pakistan itself, where the US cables detail sharp criticism of the government's ambivalence towards funding of militant groups that enjoy covert military support.

The cables show how before the Mumbai attacks in 2008, Pakistani and Chinese diplomats manoeuvred hard to block UN sanctions against LeT's charity wing Jamaat ud Dawa.

But in August 2009, nine months after sanctions were finally imposed, US diplomats wrote that "we continue to see reporting indicating that JUD is still operating in multiple locations in Pakistan and that the group continues to openly raise funds". JUD denies it is the charity wing of LeT.